UBS to undergo further boardroom reshuffling

Swiss bank announces a second major boardroom reshuffle since it announced heavy losses earlier this year.

1 July 2008

ZURICH - UBS AG announced a major boardroom reshuffle Tuesday, the second since the Swiss banking giant suffered heavy losses as a result of the U.S. subprime crisis.

Four of the bank's 12 board members will step down in conjunction with an extraordinary shareholders meeting on 2 Oct, it said.

UBS shares fell to a new low of CHF 20.30 on the Zurich exchange Tuesday, a drop of 5.1 percent compared with the previous close.

The bank is likely to inform investors in October about the impact of measures to limit further damage resulting from its subprime investments.

Swiss newspaper reports over the weekend said the bank would not issue a profit warning for its second quarter, indirectly confirming market expectations that UBS on 12 Aug will report a net loss of CHF 1 billion to 5 billion for the three months ending 30 June.

Switzerland's biggest bank has been badly affected by the U.S. subprime crisis, writing down USD 37.4 billion over the past 10 months, during which its share price more than halved.